Where is the insurance industry re: Brexit

28th February 2019

We try to mention the dreaded ‘B’ word as little as we can on this blog.

Obviously we’re doing as much planning as possible for
Brexit behind the scenes, but we know that you’re probably more than a little
fed up of hearing about it by now. It feels like you can’t switch on the TV or
radio without hearing about deals, no deals and some fall out between Theresa
May and her party/the opposition/the eu (delete as appropriate).

But, with only 29 days (at the time of writing) until the UK packs her bags and leaves on the midnight train, we thought we’d take stock and analyse the current lay of the land where insurance is concerned.

So here is what we know, don’t know and what we need to work
out when it comes to an insurance Brexit.

The general feeling

As with the rest of the country, the major concern from the insurance world is the uncertainty that still casts a cloud over the whole Brexit topic. As it stands (again, at the time of writing), the UK is heading for a no-deal Brexit. That means leaving the EU on the 29th March with WTO trade terms.

It’s a feeling that’s echoed by large swathes of the
insurance industry. Whether for or against the UK leaving the EU, most agree
that no-deal is not the way to go about it.

So the industry isn’t ready for Brexit then?

Well, not quite. In truth, no one can ever be ready for
something that they’re not sure is going to happen. The UK will leave the EU,
but at the moment, it’s anyone’s guess how they do it.

But having said that, there are measures in place to prevent
chaos and limit disruption for insurance customers.

For instance, the FCA (Financial Conduct Authority) has
already outlined how it will use special transitional powers to ensure a stable
regulatory environment if the UK leaves the EU without a deal, according
to this article on Insurance Age.

So the insurance industry isn’t ready, to put it bluntly.
But no sector can be fully ready with so much uncertainty. Insurers and brokers
have put plans in place to protect customers. We know Romero have been doing
this for some time.

It’s fair to say that the insurance industry is as prepared
as it can be, and as much as any other sector.

‘But some of my business is based abroad, I don’t know where I stand’

This is an issue that’s come up a lot over the past few
months; what’s going to happen to British businesses with foreign risks.

Unfortunately, as with most of the Brexit conversation, the
answer is ‘it depends’.

All in all, it looks like there won’t be too much
disruption, and the right work has been carried out by the insurers. But when
it comes to Brexit, there is always a twist and turn around the corner.
Therefore the best advice is to make the most of a broker who can use their
experience and expertise to guide you through this uncertain time.

Uncertainty remains

In a couple of months’ time, when all is said and done,
we’ll put together another one of these blogs. Hopefully things will be clearer
by then. Until then, have faith that the insurance industry is doing everything
in their power to continue plain sailing.